One of the most basic ideas that goes along with the stock market is buy low and sell high. Although this advice is overly obvious, many new investors will do the exact opposite when trading stocks. Inexperienced investors have the tendency to buy stocks that have been performing the best recently. This may be caused by certain factors such as not looking into the underlying fundamentals or just hoping that the stock will continue to rise. Rookie investors may also make the error of holding onto shares that continue to drop in value. Instead of cutting the loser loose, they hold off with the hope that eventually the stock will at least get back to the breakeven point.
Trading on volume of 84285, Fanhua Inc. (:FANH) has seen a change from the open of 0.26 since the stock opened at 32.97. Monitoring today’s activity, the stock has hit a high point of 33.3 and slipped to a low of 32.97.
Checking in on the Awesome Oscillator, we see that the reading is 1.03177029 for Fanhua Inc. (:FANH). Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.
The 20 day Keltner Channels upper envelope is 34.05716516. The 20 day Keltner Channels lower envelope is 32.52756391. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.
Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 34.75. For the same period, the lower band level is 32.2.
Shares of Fanhua Inc. (:FANH) ended last session at 33.23. Following today’s trade, we note that the stock has moved 0.84977238% since the opening bell. The company has a current market cap of 2160268000. The stock’s high price over the last month is presently 34.75.
Watching volatility readings, we can see the current value for the stock is 6.07448107. Volatility for the week stands at 3.81008086, and the monthly reading is 3.35823065. Volatility involves the amount of risk in relation to the amount of change in a stock’s value.
Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.06515727. Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.
Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Sell”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Buy”.
Investors might be looking to find some bargains to add to the portfolio as we move closer towards the end of the year. Maybe some of the earlier portfolio picks don’t look as promising as they did a few months ago. There might also be a few names that have fallen off a cliff and do not look they will be returning to previous levels. Investors may be searching for a few overlooked stocks that the rest of the investing community has passed on for whatever reason. Nobody knows for sure what the next couple of quarters have in store. As earnings season kicks off, investors will be closely following the companies that manage to beat expectations by a wide margin.